Federal Signal Completes Acquisition of Hog Technologies, A Leading U.S. Manufacturer of Road-Marking, Line-Removal and Waterblasting Equipment
Federal Signal (NYSE: FSS) has completed the acquisition of Hog Technologies for an initial purchase price of $78.1 million, with a potential earn-out of up to $15 million based on 2025 financial targets. The company has also agreed to acquire Hog's manufacturing facility in Stuart, Florida for $14.5 million.
Hog Technologies, founded in 1988, is a leading U.S. manufacturer of truck-mounted road-marking, line-removal, and waterblasting equipment. The company generated annual revenues of $65 million in 2024, with aftermarket parts and services accounting for 35% of total revenues. Hog's product portfolio includes patented rubber- and paint-removal systems, pavement-marking and grinding trucks, and advanced waterblasting units.
The acquisition aligns with Federal Signal's strategic priorities to grow its specialty vehicle platform and strengthen its position in infrastructure maintenance. The transaction, completed on February 12, 2025, is expected to be accretive to earnings and cash flow in 2025.
Federal Signal (NYSE: FSS) ha completato l'acquisizione di Hog Technologies per un prezzo di acquisto iniziale di 78,1 milioni di dollari, con un potenziale guadagno di fino a 15 milioni di dollari basato sugli obiettivi finanziari del 2025. L'azienda ha anche concordato di acquisire l'impianto di produzione di Hog a Stuart, Florida, per 14,5 milioni di dollari.
Hog Technologies, fondata nel 1988, è un produttore statunitense leader nella produzione di attrezzature per la segnatura stradale, rimozione di linee e idroblasting montate su camion. L'azienda ha generato ricavi annuali di 65 milioni di dollari nel 2024, con i ricambi e i servizi post-vendita che rappresentano il 35% dei ricavi totali. Il portafoglio prodotti di Hog include sistemi brevettati per la rimozione di gomma e vernice, camion per la segnatura e la fresatura delle pavimentazioni, e unità avanzate di idroblasting.
L'acquisizione è in linea con le priorità strategiche di Federal Signal di espandere la sua piattaforma di veicoli speciali e rafforzare la sua posizione nella manutenzione delle infrastrutture. La transazione, completata il 12 febbraio 2025, dovrebbe essere redditizia per gli utili e il flusso di cassa nel 2025.
Federal Signal (NYSE: FSS) ha completado la adquisición de Hog Technologies por un precio de compra inicial de 78.1 millones de dólares, con un posible rendimiento de hasta 15 millones de dólares basado en los objetivos financieros de 2025. La empresa también ha acordado adquirir la instalación de fabricación de Hog en Stuart, Florida, por 14.5 millones de dólares.
Hog Technologies, fundada en 1988, es un fabricante líder en EE. UU. de equipos de marcado de carreteras, eliminación de líneas y chorro de agua montados en camiones. La compañía generó ingresos anuales de 65 millones de dólares en 2024, con partes y servicios de posventa que representan el 35% de los ingresos totales. El portafolio de productos de Hog incluye sistemas patentados de eliminación de goma y pintura, camiones para marcado de pavimentos y fresado, y unidades avanzadas de chorro de agua.
La adquisición se alinea con las prioridades estratégicas de Federal Signal para hacer crecer su plataforma de vehículos especializados y fortalecer su posición en el mantenimiento de infraestructuras. La transacción, completada el 12 de febrero de 2025, se espera que sea beneficiosa para las ganancias y el flujo de efectivo en 2025.
Federal Signal (NYSE: FSS)는 Hog Technologies를 초기 구매 가격 7,810만 달러에 인수 완료했으며, 2025년 재무 목표에 따라 최대 1,500만 달러의 추가 수익이 발생할 수 있습니다. 이 회사는 또한 플로리다주 스튜어트에 있는 Hog의 제조 시설을 1,450만 달러에 인수하기로 합의했습니다.
1988년에 설립된 Hog Technologies는 미국의 트럭 장착 도로 표지, 라인 제거 및 수압 장비의 선도적인 제조업체입니다. 이 회사는 2024년에 6,500만 달러의 연간 수익을 올렸으며, 애프터마켓 부품 및 서비스가 전체 수익의 35%를 차지합니다. Hog의 제품 포트폴리오에는 특허받은 고무 및 페인트 제거 시스템, 포장 마킹 및 연삭 트럭, 고급 수압 장치가 포함됩니다.
이번 인수는 Federal Signal의 특수 차량 플랫폼을 성장시키고 인프라 유지 관리에서의 입지를 강화하려는 전략적 우선 사항과 일치합니다. 2025년 2월 12일 완료된 이 거래는 2025년 수익 및 현금 흐름에 긍정적인 영향을 미칠 것으로 예상됩니다.
Federal Signal (NYSE: FSS) a finalisé l'acquisition de Hog Technologies pour un prix d'achat initial de 78,1 millions de dollars, avec un potentiel de gain allant jusqu'à 15 millions de dollars basé sur les objectifs financiers de 2025. L'entreprise a également accepté d'acquérir l'installation de fabrication de Hog à Stuart, en Floride, pour 14,5 millions de dollars.
Fondée en 1988, Hog Technologies est un fabricant américain leader d'équipements de marquage routier, de suppression de lignes et de nettoyage à haute pression montés sur camion. L'entreprise a généré des revenus annuels de 65 millions de dollars en 2024, les pièces et services de rechange représentant 35 % des revenus totaux. Le portefeuille de produits de Hog comprend des systèmes brevetés de suppression de caoutchouc et de peinture, des camions de marquage de chaussée et de fraisage, ainsi que des unités avancées de nettoyage à haute pression.
L'acquisition s'inscrit dans les priorités stratégiques de Federal Signal pour développer sa plateforme de véhicules spéciaux et renforcer sa position dans l'entretien des infrastructures. La transaction, finalisée le 12 février 2025, devrait être bénéfique pour les bénéfices et le flux de trésorerie en 2025.
Federal Signal (NYSE: FSS) hat die Übernahme von Hog Technologies zu einem anfänglichen Kaufpreis von 78,1 Millionen Dollar abgeschlossen, mit einem potenziellen Earn-out von bis zu 15 Millionen Dollar, basierend auf den finanziellen Zielen für 2025. Das Unternehmen hat außerdem zugestimmt, Hog's Produktionsstätte in Stuart, Florida, für 14,5 Millionen Dollar zu übernehmen.
Hog Technologies, gegründet 1988, ist ein führender US-Hersteller von auf Lastwagen montierten Straßenmarkierungs-, Linienentfernungs- und Hochdruckreinigungsgeräten. Das Unternehmen erzielte im Jahr 2024 einen Jahresumsatz von 65 Millionen Dollar, wobei Ersatzteile und Dienstleistungen 35% des Gesamtumsatzes ausmachten. Das Produktportfolio von Hog umfasst patentierte Systeme zur Gummi- und Farbabnahme, Straßenmarkierungs- und Schleiflastwagen sowie fortschrittliche Hochdruckeinheiten.
Die Übernahme steht im Einklang mit den strategischen Prioritäten von Federal Signal, die Plattform für Spezialfahrzeuge auszubauen und die Position im Bereich Infrastrukturwartung zu stärken. Die Transaktion, die am 12. Februar 2025 abgeschlossen wurde, wird voraussichtlich positiv auf den Gewinn und den Cashflow im Jahr 2025 wirken.
- Acquisition expected to be accretive to earnings and cash flow in 2025
- Target company has $65 million in annual revenue (2024)
- Strong aftermarket business representing 35% of total revenues
- Patented technology and equipment designs
- Strategic expansion into infrastructure maintenance sector
- Significant initial cash outlay of $92.6 million (including facility)
- Increased debt through use of revolving credit facility
- Additional contingent payment liability of up to $15 million
Insights
This acquisition marks a significant strategic expansion for Federal Signal, with several compelling value drivers that warrant attention. The deal structure reveals sophisticated financial engineering - the
The transaction metrics are particularly noteworthy. At approximately 1.65x revenue, the valuation appears reasonable for a specialized industrial equipment manufacturer with significant intellectual property and recurring revenue streams. Hog's
The strategic rationale is compelling on multiple fronts:
- Technology Integration: Hog's patented runway rubber-removal systems and waterblasting technology complement Federal Signal's existing portfolio
- Market Expansion: Enhanced presence in airport infrastructure maintenance opens new growth vectors
- Operational Leverage: Potential for significant cost synergies through shared manufacturing and distribution networks
- Working Capital Optimization: Integration of Hog's aftermarket business could improve inventory management and cash conversion cycles
The facility acquisition in Stuart, Florida for
The immediate accretion to earnings and cash flow in 2025 indicates well-planned integration strategies and realistic synergy targets. The transaction's funding through existing cash and credit facilities demonstrates Federal Signal's strong balance sheet management while maintaining financial flexibility for future opportunities.
Founded in 1988, Hog has established itself as a leading innovator serving infrastructure, municipal and airport markets, with a broad portfolio of products, including rubber- and paint-removal systems, pavement-marking and grinding trucks, and advanced waterblasting units. Hog has secured a leading position in the industry through its patented equipment designs, deep product expertise, technology leadership, and understanding of the specific requirements of its customers. One of Hog's unique innovations is a patented runway rubber-removal system, which is widely recognized and used by major airports across the globe.
"Our 150 team members take exceptional pride in manufacturing our suite of Hog products that keep our communities, highways and airport runways safe," said Vince Giordano, Hog's President.
"This acquisition is aligned with our strategic priorities of growing our best-in class specialty vehicle platform," said Jennifer L. Sherman, President and Chief Executive Officer. "Hog's product portfolio, experienced and talented management team, and strong presence in international and airport markets provide a unique opportunity to strengthen our leadership in the infrastructure maintenance sector, broaden our product offerings and unlock future growth opportunities. We are particularly excited about the synergies this transaction creates within our existing road-marking, line-removal, and waterblasting offerings. We also believe that Hog's technological advancements and expansive aftermarket parts and service business will enable Federal Signal to better serve our customers in the future."
"Federal Signal has been a valued long-term vendor and partner. We are excited to join forces to launch the next phase of growth at Hog," said James P. Crocker, Founder and CEO, Hog Technologies. "This partnership is a natural cultural fit with both companies exhibiting a shared vision of providing excellent customer service and maintaining strong local community connections."
Hog generated annual revenues of approximately
The transaction closed on February 12, 2025. The Company expects the acquisition to be accretive to earnings and cash flow in 2025. Management will issue its 2025 outlook, including the impact of Hog, later this month during its fourth quarter 2024 earnings call.
About Federal Signal
Federal Signal Corporation (NYSE: FSS) builds and delivers equipment of unmatched quality that moves material, cleans infrastructure, and protects the communities where we work and live. Founded in 1901, Federal Signal is a leading global designer, manufacturer, and supplier of products and total solutions that serve municipal, governmental, industrial, and commercial customers. Headquartered in
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This release contains various forward-looking statements as of the date hereof and we undertake no obligation to update these forward-looking statements regardless of new developments or otherwise. Statements in this release that are not historical are forward-looking statements. Such statements are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Such risks and uncertainties include but are not limited to: economic and political uncertainty, risks and adverse economic effects associated with geopolitical conflicts, legal and regulatory developments, foreign currency exchange rate changes, inflationary pressures, product and price competition, supply chain disruptions, availability and pricing of raw materials, interest rate changes, risks associated with acquisitions such as integration of operations and achieving anticipated revenue and cost benefits, work stoppages, increases in pension funding requirements, cybersecurity risks, increased legal expenses and litigation results and other risks and uncertainties described in filings with the Securities and Exchange Commission.
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SOURCE Federal Signal Corporation
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